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| Advantages of Merchandise Assortment planning for your retail business. |
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Merchandise Planning is the science of forecasting sales and managing inventory, balanced with the art
of identifying the merchandise that your customer needs. On one hand the retailers suffers from lost
opportunities as a result of stock unavailability and on the other hand their margins are squeezed if the
unsold merchandise is marked down at the end of a season.
Assortment Planning helps ensures the right product in the right store at the right time and at the right
price. It implies anticipating what your customers are looking for and building a product mix that attracts
the customers. In order to provide customer-centric assortments, merchandisers need to deploy highly
customized and customer centric plan.
Retail environment in today’s scenario is very complex and dynamic. Every retailer has the challenge
to effectively plan and execute unique store level assortments that can help him to match the local
consumer demand. Moreover, manufacturers and retailers face an even bigger challenge to achieve
a sustainable growth and enjoy long term profitability. This is because of the high level of product
proliferation, rapidly changing consumer priorities and constantly opening up of retail outlets. The need
of the hour for retailer is to coordinate between various sources to integrate information, analyse it and
apply it for informed decision making.
Delivering the right styles, color and sizes of merchandise to match local demand is critical for retailers
to maximize their profitability. For this they need to continuously re-evaluate the assortment of their
merchandise mix with the change in supply and demand factors. This involves not only accurate
assessment of the historical performance but also precise forecasting. It fosters confidence in
management about their strategic and financial objectives and helps them invest in right merchandise
mix to maximize the profits. |
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| Advantages of Merchandise Assortment Planning |
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Integrated Sales and Inventory Forecasting |
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Improved Assortment Accuracy |
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Faster Inventory Turnover |
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Maximizing Sales opportunities and decline in lost opportunities |
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Fewer Markdowns and reduced shrinkages |
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